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"Wisdom is knowing what to do next; virtue is doing it."

David Starr Jordan

Our investment philosophy is founded on the principle that active management adds real value over passive approaches on a portfolio basis over market cycles.  We believe that a portfolio that is based upon active investment choices, made by means of a well-articulated, reputable investment process that takes risks commensurate with desired returns, should over the long term outperform a passive one.

We believe that active management includes strategically underweighting (relative to the investor's long-term equilibrium policy portfolio) those asset classes and sectors where capital is plentiful, prices are rich and the expected return is not commensurate with the risk and similarly overweighting those assets where capital is scarce, prices are cheap and there is less risk relative to the expected return.

We believe that when active managers and strategies are overly constrained by benchmarks, they will not produce satisfactory risk adjusted returns over the long term.  And we believe that there are investment managers and organizations that are more talented than others and where skill dominates luck.